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      <Form990ScheduleJPartIII>
        <ReturnReference>PART I, LINE 3</ReturnReference>
        <Explanation>INDEPENDENT GUIDELINES: WHEN SETTING COMPENSATION FOR THE OFFICERS, DIRECTORS, TRUSTEES, KEY EMPLOYEES, AND THE HIGHEST COMPENSATED EMPLOYEES, ADVENTIST HEALTHCARE FULLY COMPLIES WITH THE PROCEDURAL SAFE GUARDS EMBODIED IN IRS REGULATIONS. COMPENSATION FOR ADVENTIST HEALTHCARE OFFICERS, DIRECTORS, TRUSTEES, KEY EMPLOYEES, AND THE HIGHEST COMPENSATED EMPLOYEES IS ENTIRELY SET BY A COMMITTEE OF ADVENTIST HEALTHCARE BOARD OF TRUSTEES. IN SETTING COMPENSATION, THE GOVERNING BOARD COMMITTEE RELIES UPON MARKET COMPARABILITY DATA PROVIDED BY AN INDEPENDENT OUTSIDE COMPENSATION CONSULTANT WHO PROVIDES A SUMMARY OF HEALTH CARE SALARIES AND BENEFITS FOR COMPARABLE SIZED ORGANIZATIONS BOTH NATIONALLY AND IN THE BALTIMORE-WASHINGTON REGION. TO FURTHER ENSURE REASONABLENESS, BOTH COMPENSATION AND BENEFITS ARE TARGETED AT THE 50TH PERCENTILE (OR MEDIAN) OF THE MARKET. PAY PHILOSOPHY: FOR ALL ADVENTIST HEALTHCARE EMPLOYEES INCLUDING THOSE LISTED ON SCHEDULE J, THE GOAL OF ADVENTIST HEALTHCARE IS TO OFFER COMPETITIVE SALARIES IN ORDER TO ATTRACT, HIRE AND RETAIN QUALIFIED AND TALENTED INDIVIDUALS. MAINTAINING A QUALITY, STABLE WORKFORCE HAS A POSITIVE IMPACT ON THE WORKPLACE AND ON THE CARE PROVIDED TO OUR PATIENTS/RESIDENTS AND THEIR FAMILIES. IN GENERAL, NON-EXECUTIVE EMPLOYEES ARE COMPENSATED UTILIZING THE FULL WAGE SCALE FOR THEIR RESPECTIVE POSITIONS, COMPARED TO THE MARKET. HOWEVER, EXECUTIVES ARE GENERALLY LIMITED TO THE MEDIAN OF THE MARKET FOR THEIR RESPECTIVE POSITIONS.</Explanation>
      </Form990ScheduleJPartIII>
      <Form990ScheduleJPartIII>
        <ReturnReference>PART I, LINE 4B</ReturnReference>
        <Explanation>CUMULATIVE LUMP-SUM TAXABLE PAYMENTS MADE AS A RESULT OF TAX LAW CHANGES THAT AFFECTED THE ADMINISTRATION OF THE ADVENTIST HEALTHCARES CAPITAL ACCUMULATION ACCOUNT (CAA) PLAN ESTABLISHED PURSUANT TO SECTION 457(F) OF THE INTERNAL REVENUE CODE WERE AS FOLLOWS: WILLIAM G. ROBERTSON: $180.793 JAMES G. LEE: $71,448 TERRY FORDE: $85,654 SUSAN L. GLOVER: $38,660 ON NOVEMBER 30, 2010, ADVENTIST HEALTHCARE, INC. SOLD ITS NURSING HOMES OPERATIONS AND ASSETS TO AN UNRELATED ENTITY, GENESIS HEALTHCARE. GEORGE CHILD, THE PRESIDENT OF ADVENTIST SENIOR LIVING SERVICES, INC. WAS TERMINATED AND RECEIVED SEVERANCE PAYMENTS OF $233,560 IN 2011 AND RETENTION BONUS OF $121,500 IN 2011.</Explanation>
      </Form990ScheduleJPartIII>
      <Form990ScheduleJPartIII>
        <Identifier>SUPPLEMENTAL INFORMATION</Identifier>
        <ReturnReference>PART III</ReturnReference>
        <Explanation>COMPENSATION DEFINED. THE COMPENSATION REPORTED FOR THE EMPLOYEES SET FORTH ON SCHEDULE J IS COMPRISED OF THE FOLLOWING: BASE COMPENSATION INCLUDES NONDISCRETIONARY PAYMENTS, AGREED UPON IN ADVANCE, CONTINGENT ONLY UPON THE PAYEES PERFORMANCE OF AGREED UPON SERVICES (SUCH AS SALARY OR FEES). INCENTIVE COMPENSATION INCLUDES PAYMENTS BASED ON SATISFACTION OF PRE-DETERMINED PERFORMANCE TARGETS SUCH AS QUALITY/PATIENT SAFETY GOALS, EMPLOYEE AND CUSTOMER ENGAGEMENT GOALS, ORGANIZATIONAL GROWTH, AND FINANCIAL PERFORMANCE, AMONG OTHER THINGS. OTHER REPORTABLE COMPENSATION INCLUDES CERTAIN CUMULATIVE LUMP-SUM TAXABLE PAYMENTS MADE AS A RESULT OF TAX LAW CHANGES THAT AFFECTED THE ADMINISTRATION OF ADVENTIST HEALTHCARE CAPITAL ACCUMULATION ACCOUNT (CAA) PLAN ESTABLISHED PURSUANT TO SECTION 457(F) OF THE INTERNAL REVENUE CODE. IN ADDITION, OTHER REPORTABLE COMPENSATION INCLUDES LONG-TERM DISABILITY COVERAGE, CELL PHONE ALLOWANCES, CASH-OUT OF UNUSED PAID TIME OFF (PTO) HOURS, IMPUTED VALUE OF LIFE INSURANCE BENEFITS, OUT-OF-STATE COMMUTE, AND SEVERANCE, AS APPLICABLE. OTHER REPORTABLE COMPENSATION ALSO INCLUDES THE FOLLOWING, AS APPROVED BY THE BOARD COMPENSATION COMMITTEE: TAXABLE HOUSING ASSISTANCE FOR RELOCATION TO THE AREA FOR ACCEPTANCE OF EMPLOYMENT: TERRY FORDE NON-TAXABLE BENEFITS INCLUDES PRE-TAX PAYROLL DEDUCTIONS (SUCH AS FLEXIBLE MEDICAL SPENDING, DEPENDENT CARE, AND EMPLOYEE HEALTH BENEFIT PREMIUM), AND THE EMPLOYER PORTION OF CERTAIN EMPLOYEE BENEFITS SUCH AS HEALTH INSURANCE, DENTAL INSURANCE, VISION INSURANCE, LIFE INSURANCE, BASE CONTRIBUTIONS TO RETIREMENT PLANS, MATCHING OF EMPLOYEES RETIREMENT CONTRIBUTIONS, ETC. PAY PRACTICE: ADVENTIST HEALTHCARE UTILIZES A SINGLE EMPLOYER ID FOR ALL OF ITS AFFILIATED ENTITIES FOR EMPLOYMENT PURPOSES. AS SUCH, ACTUAL COMPENSATION AND BENEFITS ARE CHARGED TO THE RESPECTIVE ENTITIES AND THE RESULTING COMPENSATION AND BENEFITS ARE REPORTED ON EACH AFFILIATE IRS FORM 990 AS IF PAID DIRECTLY BY SUCH AFFILIATE. AS APPLICABLE, THE SAME AND NON-ADDITIVE COMPENSATION AND EMPLOYMENT BENEFIT PLAN CONTRIBUTION AMOUNTS WERE ALSO DISCLOSED IN THE ADVENTIST HEALTHCARE INC. RELATED ENTITIES RETURNS.</Explanation>
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    <IRS990ScheduleO documentId="RetDoc1044400001">
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION A, LINE 6</ReturnReference>
        <Explanation>BY LAWS, ARTICLE II - THE BOARD OF TRUSTEES APPROVES ALL ACTIONS OF MANAGEMENT.</Explanation>
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      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION A, LINE 7A</ReturnReference>
        <Explanation>ADVENTIST HEALTHCARE, INC, AS SOLE CORPORATE MEMBER OF AHHS, WITH THE AUTHORITY TO APPROVE ITS BOARD MEMBERSHIP.</Explanation>
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      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION A, LINE 7B</ReturnReference>
        <Explanation>THE BOARD OF TRUSTEES APPROVES ALL ACTIONS OF MANAGEMENT. THE ACTIONS OF THE AHHS GOVERNING BOARD IS SUBJECT TO THE REVIEW OF THE BOARD OF THE ADVENTIST HEALTHCARE, INC.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION B, LINE 11</ReturnReference>
        <Explanation>DURING THE PREPARATION PROCESS, EXECUTIVE MANAGEMENT TEAM REVIEWED VARIOUS SECTIONS OF THE DRAFT FORM 990 BASED ON A PLANNED COMPLETION TIME TABLE. IN ADDITION, THE EXECUTIVE COMMITTEE OF THE BOARD REVIEWED CERTAIN KEY SECTIONS OF THE FORM. PRIOR TO FILING, ALL MEMBERS OF THE BOARD ARE PROVIDED A COPY OF THIS FORM 990 THROUGH EMAIL, WHICH IS LINKED TO THE COMPANY'S INTRANET WEBSITE.</Explanation>
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      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION B, LINE 12C</ReturnReference>
        <Explanation>PURSUANT TO THE ORGANIZATIONS CONFLICT OF INTEREST POLICY, EACH FACILITY BOARD MEMBER, OFFICER, DIRECTOR AND ANY EMPLOYEE IN A POSITION THAT REQUIRES COORDINATION AND/OR NEGOTIATION WITH CONTRACTORS OR SUPPLIES, IS REQUIRED ON AN ANNUAL BASIS TO DISCLOSE ANY BUSINESS OR FINANCIAL RELATIONSHIP OUTSIDE OF THE ORGANIZATION. COMPLIANCE WITH POLICY IS MONITORED AND ENFORCED BY THE HUMAN RESOURCES DEPARTMENT, CORPORATE INTEGRITY DEPARTMENT AND THE LEGAL DEPARTMENT.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION B, LINE 15</ReturnReference>
        <Explanation>WHEN SETTING EXECUTIVE COMPENSATION, THE ORGANIZATION FULLY COMPLIES WITH THE PROCEDURAL SAFEGUARDS EMBEDDED IN THE IRS REGULATIONS. EXECUTIVE COMPENSATION IS ENTIRELY SET BY A COMMITTEE OF THE BOARD OF TRUSTEES OF ADVENTIST HEALTHCARE, INC. IN SETTING COMPENSATION, THE GOVERNING BOARD COMMITTEE RELIES UPON MARKET COMPARABILITY DATA PROVIDED BY AN INDEPENDED OUTSIDE COMPENSATION CONSULTANT. TO ENSURE REASONABLENESS, COMPENSATION IS SET AT THE 50TH PERCENTILE OF THE NATURAL MARKET.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION C, LINE 19</ReturnReference>
        <Explanation>THE GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS, ARE AVAILABLE TO THE PUBLIC UPON REQUEST. GENERAL EXPLANATION EMPLOYEES OF ANY OF THE ADVENTIST HEALTHCARE INC. AND AFFILIATED TAX EXEMPT ENTITIES IN THE STATE OF MARYLAND (INCLUDING ADVENTIST HOME HEALTH SERVICES, INC) ARE PAID THROUGH A COMMON PAYMASTER, ADVENTIST HEALTHCARE, INC. AND ARE REPORTED ON ITS FORM 941. SALARY AND BENEFIT EXPENSES REPORTED ON THEIR RESPECTIVE RETURNS ARE ACTUAL CHARGES RELATED TO THE EMPLOYEES WORKING ON THE SPECIFIC TAX EXEMPT ENTITY. COMPENSATION INCLUDED REGULAR BASE SALARY, BONUS, PAID TIME OFF CASH OUT, TAXABLE RELOCATION ALLOWANCE, HOLIDAY GIFT, RETROACTIVE COMPENSATION ADJUSTMENT, BEREAVEMENT LEAVE, EDUCATION, AND WITHDRAWAL OF DEFERRED COMPENSATION, AS APPLICABLE. THE SAME AND NON-ADDITIVE COMPENSATION AND EMPLOYMENT BENEFIT PLAN CONTRIBUTIOON AMOUNTS WERE ALSO DISCLOSED IN THE ADVENTIST HEALTHCARE INC.'S RELATED ENTITIES RETURNS. VENDORS PAYMENT FOR ANY OF THE ADVENTIST HEALTHCARE, INC. AND RELATED ENTITIES IN THE STATE OF MARYLAND ARE MADE THROUGH A COMMON PAYMASTER, ADVENTIST HEALTHCARE, INC.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>CHANGES IN NET ASSETS OR FUND BALANCES:</Identifier>
        <ReturnReference>FORM 990, PART XI, LINE 5:</ReturnReference>
        <Explanation>MARKET ADJUST ON INVESTMENT -8,059. TOTAL TO FORM 990, PART XI, LINE 5: -8,059.</Explanation>
      </GeneralExplanation>
    </IRS990ScheduleO>
    <IRS990ScheduleR documentId="RetDoc1043400001">
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          <BusinessNameLine1>ADVENTIST HEALTHCARE INC</BusinessNameLine1>
        </NameOfDisregardedEntity>
        <AddressUS>
          <AddressLine1>1801 RESEARCH BOULEVARD SUITE 400</AddressLine1>
          <City>ROCKVILLE</City>
          <State>MD</State>
          <ZIPCode>20850</ZIPCode>
        </AddressUS>
        <EIN>521532556</EIN>
        <PrimaryActivities>HEALTHCARE SERVICES</PrimaryActivities>
        <LegalDomicileState>MD</LegalDomicileState>
        <ExemptCodeSection>501 ( C) (3)</ExemptCodeSection>
        <PublicCharityStatus>LINE 3</PublicCharityStatus>
        <DirectControllingEntityNA>N/A</DirectControllingEntityNA>
        <ControlledOrg>0</ControlledOrg>
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      <Form990ScheduleRPartII>
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          <BusinessNameLine1>ADVENTIST PHYSICIAN SERVICES INC</BusinessNameLine1>
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        <AddressUS>
          <AddressLine1>1801 RESEARCH BLVD SUITE 400</AddressLine1>
          <City>ROCKVILLE</City>
          <State>MD</State>
          <ZIPCode>20850</ZIPCode>
        </AddressUS>
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        <LegalDomicileState>MD</LegalDomicileState>
        <ExemptCodeSection>501 ( C) (3)</ExemptCodeSection>
        <PublicCharityStatus>LINE 9</PublicCharityStatus>
        <DirectControllingEntityNA>N/A</DirectControllingEntityNA>
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          <BusinessNameLine1>ADVENTIST REHABILITATION HOSPITAL OF MARYLAND</BusinessNameLine1>
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          <AddressLine1>1801 RESEARCH BLVD SUITE 400</AddressLine1>
          <City>ROCKVILLE</City>
          <State>MD</State>
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        <LegalDomicileState>MD</LegalDomicileState>
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        <PublicCharityStatus>LINE 3</PublicCharityStatus>
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          <AddressLine1>1801 RESEARCH BLVD SUITE 400</AddressLine1>
          <City>ROCKVILLE</City>
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          <AddressLine1>7520 SURRATTS ROAD</AddressLine1>
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          <AddressLine1>1801 RESEARCH BLVD SUITE 400</AddressLine1>
          <City>ROCKVILLE</City>
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        <PublicCharityStatus>LINE 9</PublicCharityStatus>
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          <BusinessNameLine1>GLADE VALLEY NURSING AND REHABILITATION CENTER</BusinessNameLine1>
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          <AddressLine1>1801 RESEARCH BLVD SUITE 400</AddressLine1>
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          <AddressLine1>651 WILLOW GROVE STREET</AddressLine1>
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          <AddressLine1>651 WILLOW GROVE STREET</AddressLine1>
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        <ControlledOrg>0</ControlledOrg>
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      <Form990ScheduleRPartII>
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          <AddressLine1>1801 RESEARCH BLVD SUITE 400</AddressLine1>
          <City>ROCKVILLE</City>
          <State>MD</State>
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        <LegalDomicileState>MD</LegalDomicileState>
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        <PublicCharityStatus>LINE 9</PublicCharityStatus>
        <DirectControllingEntityNA>N/A</DirectControllingEntityNA>
        <ControlledOrg>0</ControlledOrg>
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      <Form990ScheduleRPartII>
        <NameOfDisregardedEntity>
          <BusinessNameLine1>POTOMAC RIDGE BEHAVIORAL HEALTH FOUNDATION</BusinessNameLine1>
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          <AddressLine1>1801 RESEARCH BLVD SUITE 400</AddressLine1>
          <City>ROCKVILLE</City>
          <State>MD</State>
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        <EIN>205479860</EIN>
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        <PublicCharityStatus>LINE 11A, I</PublicCharityStatus>
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      <Form990ScheduleRPartII>
        <NameOfDisregardedEntity>
          <BusinessNameLine1>REGINALD S LOURIE CENTER FOR INFANTS AND YOUNG CHILDREN</BusinessNameLine1>
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        <AddressUS>
          <AddressLine1>1801 RESEARCH BLVD SUITE 400</AddressLine1>
          <City>ROCKVILLE</City>
          <State>MD</State>
          <ZIPCode>20850</ZIPCode>
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      </Form990ScheduleRPartII>
      <Form990ScheduleRPartII>
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          <BusinessNameLine1>SHADY GROVE ADVENTIST HOSPITAL FOUNDATION</BusinessNameLine1>
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          <AddressLine1>1801 RESEARCH BLVD SUITE 400</AddressLine1>
          <City>ROCKVILLE</City>
          <State>MD</State>
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        <DirectControllingEntityNA>N/A</DirectControllingEntityNA>
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      <Form990ScheduleRPartII>
        <NameOfDisregardedEntity>
          <BusinessNameLine1>SHADY GROVE NURSING HOME AND REHABILITATION CENTER</BusinessNameLine1>
        </NameOfDisregardedEntity>
        <AddressUS>
          <AddressLine1>9701 MEDICAL CENTER DRIVE</AddressLine1>
          <City>ROCKVILLE</City>
          <State>MD</State>
          <ZIPCode>20850</ZIPCode>
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      <Form990ScheduleRPartII>
        <NameOfDisregardedEntity>
          <BusinessNameLine1>SLIGO CREEK NURSING &amp; REHABILITATION CENTER INC</BusinessNameLine1>
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          <AddressLine1>7525 CARROLL AVENUE</AddressLine1>
          <City>TAKOMA PARK</City>
          <State>MD</State>
          <ZIPCode>20912</ZIPCode>
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        <LegalDomicileState>MD</LegalDomicileState>
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      <Form990ScheduleRPartII>
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          <BusinessNameLine1>SPRINGBROOK ADVENTIST NURSING AND REHABILITATION CENTER INC</BusinessNameLine1>
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        <AddressUS>
          <AddressLine1>1801 RESEARCH BLVD SUITE 400</AddressLine1>
          <City>ROCKVILLE</City>
          <State>MD</State>
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      <Form990ScheduleRPartII>
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          <AddressLine1>1801 RESEARCH BLVD SUITE 400</AddressLine1>
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          <BusinessNameLine1>GERMANTOWN OUTPATIENT IMAGING</BusinessNameLine1>
        </NameOfRelatedOrg>
        <AddressUS>
          <AddressLine1>1801 RESEARCH BOULEVARD</AddressLine1>
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          <State>MD</State>
          <ZIPCode>20850</ZIPCode>
        </AddressUS>
        <EIN>204395818</EIN>
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        <LegalDomicileState>MD</LegalDomicileState>
        <DirectControllingEntityName>
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        </DirectControllingEntityName>
        <PredominantIncomeType>RELATED</PredominantIncomeType>
        <DisproportionateAllocations>0</DisproportionateAllocations>
        <GeneralOrManagingPartner>0</GeneralOrManagingPartner>
      </Form990ScheduleRPartIII>
      <Form990ScheduleRPartIV>
        <NameOfRelatedOrg>
          <BusinessNameLine1>ADVENTIST MANAGEMENT SERVICES INC</BusinessNameLine1>
        </NameOfRelatedOrg>
        <AddressUS>
          <AddressLine1>1801 RESEARCH BOULEVARD</AddressLine1>
          <City>ROCKVILLE</City>
          <State>MD</State>
          <ZIPCode>20850</ZIPCode>
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        <EIN>521575694</EIN>
        <PrimaryActivity>MANAGEMENT SERVICES</PrimaryActivity>
        <LegalDomicileState>MD</LegalDomicileState>
        <DirectControllingEntityNA>N/A</DirectControllingEntityNA>
        <TypeOfEntity>C</TypeOfEntity>
      </Form990ScheduleRPartIV>
      <Form990ScheduleRPartIV>
        <NameOfRelatedOrg>
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        </NameOfRelatedOrg>
        <AddressUS>
          <AddressLine1>1801 RESEARCH BOULEVARD</AddressLine1>
          <City>ROCKVILLE</City>
          <State>MD</State>
          <ZIPCode>20850</ZIPCode>
        </AddressUS>
        <EIN>521704500</EIN>
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        <LegalDomicileState>MD</LegalDomicileState>
        <DirectControllingEntityNA>N/A</DirectControllingEntityNA>
        <TypeOfEntity>C</TypeOfEntity>
      </Form990ScheduleRPartIV>
      <Form990ScheduleRPartIV>
        <NameOfRelatedOrg>
          <BusinessNameLine1>PREMIER MEDICAL NETWORK</BusinessNameLine1>
        </NameOfRelatedOrg>
        <AddressUS>
          <AddressLine1>1801 RESEARCH BOULEVARD</AddressLine1>
          <City>ROCKVILLE</City>
          <State>MD</State>
          <ZIPCode>20850</ZIPCode>
        </AddressUS>
        <EIN>521952469</EIN>
        <PrimaryActivity>JOINT PHYSICIAN CONT</PrimaryActivity>
        <LegalDomicileState>MD</LegalDomicileState>
        <DirectControllingEntityNA>N/A</DirectControllingEntityNA>
        <TypeOfEntity>C</TypeOfEntity>
      </Form990ScheduleRPartIV>
      <ReceiptOfIntAnnRentsRoyalties>0</ReceiptOfIntAnnRentsRoyalties>
      <GiftGrantOrCapContrToOtherOrg>0</GiftGrantOrCapContrToOtherOrg>
      <GiftGrantOrCapContrFrOtherOrg>0</GiftGrantOrCapContrFrOtherOrg>
      <LoansOrGuaranteesToOtherOrg>0</LoansOrGuaranteesToOtherOrg>
      <LoansOrGuaranteesFromOtherOrg>0</LoansOrGuaranteesFromOtherOrg>
      <SaleOfAssetsToOtherOrg>0</SaleOfAssetsToOtherOrg>
      <PurchaseOfAssetsFromOtherOrg>0</PurchaseOfAssetsFromOtherOrg>
      <ExchangeOfAssets>0</ExchangeOfAssets>
      <RentalOfFacilitiesToOtherOrgs>0</RentalOfFacilitiesToOtherOrgs>
      <RentalOfFacilitiesFrOtherOrgs>0</RentalOfFacilitiesFrOtherOrgs>
      <PerformOfServicesForOtherOrgs>0</PerformOfServicesForOtherOrgs>
      <PerformOfServicesByOtherOrgs>0</PerformOfServicesByOtherOrgs>
      <SharingOfFacilities>0</SharingOfFacilities>
      <SharingOfPaidEmployees>0</SharingOfPaidEmployees>
      <ReimbursementPaidToOtherOrg>0</ReimbursementPaidToOtherOrg>
      <ReimbursementPaidByOtherOrg>0</ReimbursementPaidByOtherOrg>
      <OtherTransferToOtherOrg>0</OtherTransferToOtherOrg>
      <OtherTransferFromOtherOrg>0</OtherTransferFromOtherOrg>
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  </ReturnData>
</Return>